Ameriquest Settlement Provisions

Provide full disclosure regarding interest rates, discount
points, prepayment penalties, and other loan or refinancing
terms. The agreement provides for both written and oral
disclosures.

Ensure that employees do not defeat the purpose of these
disclosures by criticizing or playing down the accuracy
or importance of the disclosures.

Provide the same interest rates and discount points for
similarly-situated consumers.

Ensure that every loan benefits not only Ameriquest and
its commissioned employees but the borrower as well.

Substantially revise their employee compensation system to eliminatecertain incentives. This new system may not provide incentives to include prepayment penalties or any other fees or charges in the mortgages.

Retrain their employees to comply with the terms of the
settlement agreement.

Monitor their employees more closely to ensure they comply
with the settlement agreement.

Overhaul the company’s appraisal practices by removing
branch offices and sales personnel from the appraiser selection
process, prohibiting them from pressuring appraisers for
higher values and instituting a system of periodic review
to ensure the independence of appraisers and the accuracy
and integrity of the appraisals.

Limit prepayment penalty periods on certain variable rate
mortgages.

Not solicit their borrowers to refinance during the first
24 months of their loan, unless the borrower initiates it.